Mr. Speaker, I will be sharing my time with the Parliamentary Secretary to the Minister of Indian Affairs and Northern Development.
I would also like to thank the member of the opposition who has proposed replacement of his initial motion by the following:
That the government stipulate that, in all contribution agreements between the Federal Government and individual Indian Bands, the use of any public funds be publicly reported and audited.
With this new wording, I am pleased to inform the House that the government intends to support the motion.
I must indicate, however, that another member proposed addition of the word “immediately”, which of course means that the practice would be implemented right away. With the end of the fiscal year coming up in 12 days, needless to say we cannot support this amendment. I fear the President of Treasury Board would be alarmed at a motion that would give her 12 days to put certain of these measures into place.
As far as the initial motion is concerned, we fully intend to support it.
Let me now put the discussion about first nations governance and accountability into context with a few basic facts.
All members opposite will be familiar with the budget process. The Government of Canada tables the estimates in the House and then a budget. I am sure that my colleagues realize that moneys spent by the Government of Canada are publicly disclosed and publicly audited by the auditor general. Indeed, we saw how the management of the country's finances was key to the change in government in 1993 and in the re-election of the government in 1997 and again in 2000.
We on this side of the House are fully aware of the dividends that sound fiscal management and accountability pay to any organization, and indeed to a government. We have received 98% of the audits from first nations for the year 1999-2000. The vast majority of these audits were accepted without any qualification whatsoever. This means that an independent auditor found them to be entirely acceptable according to generally accepted accounting principles.
Another fact I would like to put before the House is that only some 4% of reserves were placed under third party management last year. They require our attention and of course they are receiving it, particularly under the very able leadership of the Minister of Indian Affairs and Northern Development.
In speaking to the motion today, I would also like to pay considerable attention to those first nations people who Canadians rarely hear about. I want to talk about the vast majority whose success reflects the determination of first nations to manage their finances responsibly, to improve their accountability and increase their capacity to govern themselves responsibly.
Any changes or new initiatives will have to be developed with first nations. Notice that I said with and not for. I am proud of the degree of consultation we have had with first nations. The Indian Act never contemplated first nations managing large, sophisticated programs to the benefit of their members or that they would be owners and operators of large, successful businesses.
Many first nations have large and successful businesses which they operate to give their members a share of the Canadian economy as equals with other Canadians.
There are many examples of success, not the least of which is the Meadow Lake Tribal Council, which is a powerful economic force in northern Saskatchewan. There is the Fort McKay first nation, which is made up of important members of the Alberta tar sands development. The Dogrib first nation up in the Northwest Territories are major partners in the diamond industry, supplying services and labour to this industry.
There are three topics I would like to address in responding to the issue brought before the House by the hon. member who placed the motion before us.
First, I think it is important to look back and consider how first nations and Indian and Northern Affairs Canada have put in place funding agreements and other policies to support strong first nations governments and programs.
Second, I want to tell members of the House how Canada and first nations are working together to realize effective first nations government. I also want to explain the safeguards that we are building together to ensure the responsible use of public funds. I also want to outline how this process is leading us toward our goal of first nations self-government in Canada.
Indian and Northern Affairs Canada has looked for ways to permit more streamlined funding arrangements with greater local decision making and accountability. Further, they stressed the accountability of first nations governments to their people, while recognizing a continuing accountability due to government. These actions were taken with the full understanding that Canadians should know how these funds were spent.
Canadians, including members of the House, who want to know more about how first nations funding arrangements are conducted in Canada have opportunities to learn more. Allow me to address some of the fundamentals.
Accountability is a critical issue. First nations know that their long term interests are best served by taking firm control of their finances and continuing to improve their management and accountability practices. This was related in the document entitled “Gathering Strength—Canada's Aboriginal Action Plan”.
Regarding deficits, improvements in the quality and timeliness of first nations audits in recent years and a requirement for consolidated audits have shaped Indian Affairs and Northern Development Canada's ability to identify solutions where the debtload should cause concern.
Deficits are not unique to first nations government. Anyone sitting in the House should remember the days, particularly under a previous government that I will not name, where deficits were rampant.
Like other governments, first nations are required to prepare their audits in accordance with the public sector accounting and auditing standards of the Canadian Institute of Chartered Accountants. The results of these audits are shared with members of the community and the Government of Canada.
Today's funding arrangements between first nations and the government range from a basic model known as a comprehensive funding arrangement to the first nations funding agreement. In the latter, there is more flexibility for program and service delivery. Capacity and willingness of first nations to accept additional responsibilities is included in the agreement.
In either case, all agreements are prepared using a generic template that ensures the equitable treatment of all first nations. The general trend in transferring funds has been toward negotiated global budgets that create an incentive for sound management. The objective is to find the right mix of flexibility and accountability.
As I mentioned, agreements contain strong provisions to address the terms and conditions of funding agreements. They include requirements to maintain accounts in accordance with accepted accounting principles as set out by the Canadian Institute of Chartered Accountants.
As I pointed out, the large majority of arrangements are working as they are intended. The goal is to ensure that the band can develop the in-house capacity to manage its own finances. The auditor general has identified a need to be more proactive in addressing allegations and complaints of wrongdoing. Indeed, that is true, the auditor general is quite right in saying that the mandate of the minister's department poses a highly complex and sensitive challenge. Despite the many challenges, our resolve remains to ensure that aboriginal people in Canada attain a quality of life similar to that of other Canadians. That should be paramount for all of us.
In the Speech from the Throne our government affirmed our commitment to strengthening our relationship with aboriginal people, supporting effective and accountable governance and taking action on the basic quality of life issues.
These objectives are clearly consistent with the auditor general's observations. In our effort to continue to promote good governance for Canada's aboriginal people, we will support the new motion that was placed before the House today.